ExxonMobil still evaluating US JV with Sabicby Slavka Atanasova on Oct 30, 2016
ExxonMobil is continuing to evaluate the construction of an ethylene steam cracker on the US Gulf Coast with Saudi Arabia's Sabic, but has not yet reached a final investment decision, the company said on Friday.
"I think the value proposition is there and I think we are ahead of the game in terms of making some world scale investments in this," said Jeff Woodbury, ExxonMobil vice president on investor relations, during the company's third-quarter conference call.
ExxonMobil and Sabic announced plans in July for a potential joint ethane cracker with a capacity of 1.8mn mt/year, which would also include a monoethylene glycol plant and two polyethylene plants, Platts reported.
The companies had previously said they were evaluating sites in Texas and Louisiana for the project but have not indicated when a final decision would be made.
ExxonMobil projections show that demand for chemicals grows at about 1% above GDP annually, Woodbury said.
This indicates another 5mn mt/year of ethylene would be need in future years, the equivalent of three to four world-scale steam crackers per year.